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Happiness and International Migration

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Abstract

In this paper, we consider the extent to which the aggregate happiness of a country affects the flow of people across its borders. We merge data from the World Values Survey, which produces happiness indices for 84 countries between 1981 and 2004, with three different migration datasets. We find that happiness has a U-shaped relationship with emigration rates: emigration rates fall in happiness for relatively unhappy countries, but rise for relatively happy countries. The U-shaped relationship also holds for migrant flows into the U.S. When analyzing net migration rates, we find that the reverse relationship exists. Net migration is associated with an increase in happiness for relatively unhappy countries, but after a threshold level of happiness, net migration is associated with a decrease in happiness. Our findings are robust to various empirical specifications and datasets.

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File URL: http://commons.colgate.edu/cgi/viewcontent.cgi?article=1009&context=econ_facschol
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Bibliographic Info

Paper provided by Department of Economics, Colgate University in its series Working Papers with number 2010-03.

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Date of creation: Sep 2010
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Handle: RePEc:cgt:wpaper:2010-03

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Keywords: international migration; happiness; human development/migration;

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References

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  1. Di Tella, Rafael & Alesina, Alberto & MacCulloch, Robert, 2004. "Inequality and Happiness: Are Europeans and Americans Different?," Scholarly Articles 4553007, Harvard University Department of Economics.
  2. Betsey Stevenson & Justin Wolfers, 2009. "The paradox of declining female happiness," Working Paper Series 2009-11, Federal Reserve Bank of San Francisco.
  3. Hatton, Timothy J. & Williamson, Jeffrey G., 2003. "What Fundamentals Drive World Migration?," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  4. John F. Helliwell, 2004. "Well-Being and Social Capital: Does Suicide Pose a Puzzle?," NBER Working Papers 10896, National Bureau of Economic Research, Inc.
  5. Carol Graham, 2005. "Insights on Development from the Economics of Happiness," World Bank Research Observer, World Bank Group, vol. 20(2), pages 201-231.
  6. Richard Eckersley, 2000. "The Mixed Blessings of Material Progress: Diminishing Returns in the Pursuit of Happiness," Journal of Happiness Studies, Springer, vol. 1(3), pages 267-292, September.
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  8. David G. Blanchflower & Andrew J. Oswald, 2000. "Well-Being Over Time in Britain and the USA," NBER Working Papers 7487, National Bureau of Economic Research, Inc.
  9. George J. Borjas & Bernt Bratsberg, 1994. "Who Leaves? The Outmigration of the Foreign-Born," NBER Working Papers 4913, National Bureau of Economic Research, Inc.
  10. Oswald, Andrew J, 1997. "Happiness and Economic Performance," Economic Journal, Royal Economic Society, vol. 107(445), pages 1815-31, November.
  11. Di Tella, Rafael & MacCulloch, Robert J. & Oswald, Andrew J., 2001. "The Macroeconomics of Happiness," The Warwick Economics Research Paper Series (TWERPS) 615, University of Warwick, Department of Economics.
  12. Anna Mayda, 2010. "International migration: a panel data analysis of the determinants of bilateral flows," Journal of Population Economics, Springer, vol. 23(4), pages 1249-1274, September.
  13. Bruno S. Frey & Alois Stutzer, . "Happiness, Economy and Institutions," IEW - Working Papers 015, Institute for Empirical Research in Economics - University of Zurich.
  14. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-91, March.
  15. Stevenson, Betsey & Wolfers, Justin, 2008. "Economic Growth and Subjective Well-Being: Reassessing the Easterlin Paradox," CEPR Discussion Papers 6944, C.E.P.R. Discussion Papers.
  16. Rafael Di Tella & Robert MacCulloch, 2006. "Some Uses of Happiness Data in Economics," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 25-46, Winter.
  17. Daniel Kahneman & Alan B. Krueger, 2006. "Developments in the Measurement of Subjective Well-Being," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 3-24, Winter.
  18. Bruno Frey & Alois Stutzer, 2000. "Happiness Prospers in Democracy," Journal of Happiness Studies, Springer, vol. 1(1), pages 79-102, March.
  19. Barry R. Chiswick, 1999. "Are Immigrants Favorably Self-Selected? An Economic Analysis," University of Chicago - George G. Stigler Center for Study of Economy and State 147, Chicago - Center for Study of Economy and State.
  20. David G. Blanchflower & Andrew J. Oswald, 2004. "Money, Sex, and Happiness: An Empirical Study," NBER Working Papers 10499, National Bureau of Economic Research, Inc.
  21. Bruno S. Frey & Alois Stutzer, 2001. "What Can Economists Learn from Happiness Research?," CESifo Working Paper Series 503, CESifo Group Munich.
  22. repec:ilo:ilowps:338944 is not listed on IDEAS
  23. Hatton, Timothy J. & Williamson, Jeffrey G., 1998. "The Age of Mass Migration: Causes and Economic Impact," OUP Catalogue, Oxford University Press, number 9780195116519.
  24. Layard, Richard, 1980. "Human Satisfactions and Public Policy," Economic Journal, Royal Economic Society, vol. 90(363), pages 737-50, December.
  25. Vendrik, Maarten C.M. & Woltjer, Geert B., 2007. "Happiness and loss aversion: Is utility concave or convex in relative income?," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1423-1448, August.
  26. Ek, Ellen & Koiranen, Markku & Raatikka, Veli-Pekka & Järvelin, Marjo-Riitta & Taanila, Anja, 2008. "Psychosocial factors as mediators between migration and subjective well-being among young Finnish adults," Social Science & Medicine, Elsevier, vol. 66(7), pages 1545-1556, April.
  27. David Karemera & Victor Iwuagwu Oguledo & Bobby Davis, 2000. "A gravity model analysis of international migration to North America," Applied Economics, Taylor & Francis Journals, vol. 32(13), pages 1745-1755.
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Cited by:
  1. Betz, William & Simpson, Nicole B., 2013. "The Effects of International Migration on the Well-Being of Native Populations in Europe," IZA Discussion Papers 7368, Institute for the Study of Labor (IZA).

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